Why investors should stay in the market
Payne Capital Management President Ryan Payne and Mark Rosenberg, public affairs professor at Columbia University, and Benchmark Investments managing partner Kevin Kelly on how the stock market reacts to news from Washington and why investors should stay in the market.
Traders are betting that recent tariff threats are just negotiations between the U.S. and China and will lead to a compromise. That sentiment is sending futures higher.
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Dow Jones futures were rising by 0.39%. The S&P 500 added 0.43% and the Nasdaq Composite was up 0.65%.
The trading of tariff threats sent stocks on a rollercoaster ride, coming back from a 510 point midday decline to closing with a 230 points gain.
The Dow industrials added 230.94 points, or 1%, to 24264.30. The S&P 500 climbed 30.24 points, or 1.2%, to 2644.69. The Nasdaq Composite gained 100.83 points, or 1.5%, to 7042.11.
China had retaliated against the U.S. for tariffs on goods by matching the 25% duties on an assortment of U.S. products to the tune of $50 billion.
Japan’s Nikkei was already closed for the day on Wednesday when China announced the tariffs on U.S. products. In the Thursday session, the U.S. showing willingness to negotiate gave sentiment a boost sending the Nikkei 1.6% higher.
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Markets in China and Hong Kong are closed for a holiday.
On the U.S. economic front, investors will get one more labor-related report in the form of weekly jobless claims, prior to Friday’s release of the monthly jobs report. The latest trade deficit report will also be issued.
